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The incremental cost of multiplay - an overview

by Josie Sephton | Jan 24, 2013

Based on findings from the most recent update of Teligen's OECD Fixed Broadband Price Benchmarking service, which considers more than 120 ISPs in 40 countries around the world, residential users can expect to pay on average, between USD PPP 27 and USD PPP 68 per month for broadband and related services. The cost will vary based on the speed of service and whether users opt for standalone broadband or a bundle of services with some combination of broadband, phone and television. Note that these costs only include basic levels of phone and television service that will be included in a multiplay bundle, and do not take into account cost associated with service add-ons, in the form of premium television channels, or additional call bundles, which will attract additional charges over the basic service offerings.

The two tables below show the average monthly cost in US dollars (PPP) for residential broadband services - both standalone and multiplay - across 40 European and OECD countries, and the incremental cost of various multiplay combinations over standalone broadband.

Table 1: Average monthly cost in USD PPP for residential broadband services, December 2012

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Source: OECD Fixed Broadband Price Benchmarking, December 2012 update

Table 1: Incremental cost of phone and television service over standalone broadband, December 2012

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Source: OECD Fixed Broadband Price Benchmarking, December 2012 update

The incremental cost for phone service ranges from just under 8 USD PPP per month, to over 14 USD PPP per month, while the incremental cost for TV is just over 8 USD PPP per month to almost 17 USD PPP per month. As the speed of service increases and with broadband services more likely to be fibre-based, the incremental cost of TV decreases. By contrast, increases in broadband speed results in an incrementally more expensive phone service. Users taking all three services (broadband, phone and TV) on average pay an extra 21 USD PPP month, irrespective of speed.

A more detailed analysis of broadband price development is available in the recently published insight, 'Broadband prices driven by increasing speeds', which is available for free download.

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